OREANDA-NEWS. October 23, 2014. Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries – “Polymetal”, the “Company”, or the “Group”) is pleased to announce the Group’s production results for the third quarter and nine months ended September 30, 2014.

HIGHLIGHTS
Polymetal reports another strong set of the results, with 1,040 Koz of gold equivalent produced during the nine month period ended 30 September 2014, an increase of 7% year-on-year. Production growth was mainly driven by increased throughput at Dukat, Omolon and Mayskoye, combined with a solid grade profile.

As a result, the Company reaffirms it is on track to exceed its original gold equivalent production guidance of 1.3 Moz for 2014 by approximately 5%. The Company expects to produce 1.35 Moz of gold equivalent in 2015 and 1.40 Moz of gold equivalent in 2016.

Gold equivalent production in the third quarter was 388 Koz, an increase of 16% quarter-on-quarter. This represents a decrease of 6% from the previous year, mainly due to falling production at Khakanja and Varvara. Quarterly gold production was 259 Koz, up 32% quarter-on-quarter and down 8% year-on-year. Silver production in the third quarter was 7.7 Moz, up 2% year-on-year.

With the start of the navigation season, the Company has commenced concentrate shipment at Mayskoye. The first 22 Kt of concentrate containing 39 Koz of payable gold were sold during the quarter, and joint processing of Albazino and Mayskoye concentrates started at the Amursk POX plant.

Net debt at 30 September 2014 increased by US\\$ 294 million compared to 30 June 2014 to US\\$ 1,332 million as the Company obtained an additional USD 318.5 million of debt for the acquisition of the Kyzyl gold project in Kazakhstan (completed on September 4, 2014), while continuing to generate free cash flow and pay dividends.

The Company is continuing to benefit from the ongoing depreciation of the Russian ruble relative to the US dollar in 2H 2014. In Q3, the average exchange rate was 36.2 USD/RUB versus 35.0 USD/RUB in 1H 2014. As of 15 October 2014, the exchange rate was 40.5 USD/RUB. As a result, the Company is further reducing its full-year Total Cash Cost guidance to USD 625-675 per gold equivalent ounce, and All-in Sustaining Cash Cost to US\\$ 925-975 per gold equivalent ounce.

“Polymetal has maintained its strong operating track record this year while delivering on its key strategic priorities”, said Vitaly Nesis, CEO of Polymetal, commenting on the results. “The successful completion of the Kyzyl acquisition in September is complemented by solid performance across our mines and resulting strong free cash flow generation, which will allow us to maintain an optimistic outlook on operating and financial results for the year.”